It’s time for the retirement plan industry—especially in the 401(k) and 403(b) space—to leave revenue sharing behind in favor of simpler, more transparent pricing models.
Once introduced as a way to shift plan costs to participants, revenue sharing has since morphed into a confusing, opaque system filled with complex share classes and inconsistent fee structures—leaving most plan sponsors and participants in the dark.
Despite regulations aimed at increasing fiduciary responsibility and fee disclosure, transparency is still lacking. Fred Barstein makes a strong case for cutting through the confusion. In his latest column, he calls for a clear, direct pricing model where all vendors—advisors, recordkeepers, TPAs—plainly state their fees, and employers can choose how to fairly allocate costs.
Read more in Fred Barstein’s latest: “Revenue Sharing: What Is It Good For? Absolutely Nothing.”
